08 September 2016
London
Reporter: Drew Nicol

UK pension funds consolidate asset pooling strategy


The Brunel Pension Partnership, an investment pooling project for 10 local government pension funds across South West England, has pushed ahead with plans for closers ties with the appointment of bfinance as the group’s investment advisor.

The partnership boasts roughly £23 billion in combined assets and aims to boost this total through an estimated net savings worth £16 million annually, and a potential to increase savings to £70 million a year by sharing investment costs, according to bfinance.

Bfinance will provide independent advice on the 22 proposed portfolios that will be made available to the funds, as well as review the specifications for the portfolios, including structure, fee levels, and projected savings.

According to bfinance, it has previously worked with more than 40 of the UK's local government pension funds. It has also advised over 70 public pension funds internationally.

Brunel Pension Partnership's long-term asset management plan involves the formation of the Brunel Company, a Financial Conduct Authority-authorised business that will be responsible for managing the pooled assets.

Matthew Trebilcock of Brunel Pension Partnership said: “We welcome our partnership with bfinance and are confident that their specialist expertise and experience in the competitive landscape of pooling funds will provide us with a thorough and tailored cost benefit analysis of the proposed investment portfolios that the Brunel Pension Partnership have designed for the ten funds that are part of the project to ensure that it is the most appropriate approach for the Partnership.”

The Brunel Pension Partnership was set up last year following advice from the UK government that all 89 of the UK's local government pension scheme funds should pool their assets as a cost saving strategy.​

More mandate news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Pension fund mandate for BNP Paribas
22 September 2017 | London | Reporter: Drew Nicol
BNP Paribas has been appointed to provide global custody for £3 billion in pension fund assets for the West Sussex Pension Fund
Lombard Risk dominates Canada with new mandate win
18 July 2017 | London | Reporter: Drew Nicol
Lombard Risk Management has tightened its grip on the Canadian banking market with another major bank signed up to its flagship Colline collateral management solution
Mirae Asset Securities chooses BNP Paribas for global custody
12 July 2017 | New York | Reporter: Mark Dugdale
BNP Paribas will provide the US broker-dealer and subsidiary of Mirae Asset Financial Group with global custody services in the Americas, Europe and Asia
Italian pension fund Fondo Pensione Prevedi has selected BNP Paribas Securities Services to provide it with securities lending services
LGPS board releases transparency code for managers
22 May 2017 | London | Reporter: Drew Nicol
Asset managers looking to claim mandates from the LGPS pooling initiative can now sign up to a new fee transparency code ahead of the April 2018 deadline
SS&C wins expanded Acadian mandate
17 May 2017 | Connecticut | Reporter: Drew Nicol
Acadian Asset Management cites collateral management and accounting expertise as key to SS&C mandate
Pension funds pick NT for sec lending
28 April 2017 | Belfast | Reporter: Stephanie Palmer
Northern Trust has secured its thirteenth Irish state pension fund as a securities lending services client